New Delhi:
The Punjab National Bank has altered the interest rates on FD (Fixed Deposit) on an amount not exceeding Rs 2 crores. Now any account holder will be able to garner an interest of 2.9% to 5.2% on creation of an FD. The new rate of interests had been rolled out from May 7.
Here is a list of rate of interests that can be gained on different investment periods.
Time Period
Interest rate (in %)
7 to 45 days
3.00
46 to 90 days
3.25
91 to 179 days
3.80
180 to 270 days
4.40
271 days or more but less than 1 year
4.40
1 year
5.10
1 year 1 day to 2 years
5.10
2 year 1 day to 3 years
5.10
3 years 1 day to 10 years
5.10
Many other banks have made similar rearrangements in the existing frameworks of interest rates including ICICI, HDFC and Indian Overseas Bank. The ICICI is now giving provisions of a maximum interest rate of 5.45% while 5.60% is the maximum interest rate been given by HDFC.
Interest rates on an FD for 1 year
Bank
Interest Rate (in %)
PNB
5.10
ICICI
5.00
SBI
5.20
HDFC
5.10
Indian Overseas
5.20
Post Office
5.50
Interest rates on an FD for 2 years
Bank
Interest Rate (in %)
PNB
5.10
ICICI
5.00
SBI
5.20
HDFC
5.10
Indian Overseas
5.20
Post Office
5.50
Interest rates on an FD for 3 years
Bank
Interest Rate (in %)
PNB
5.10
ICICI
5.20
SBI
5.30
HDFC
5.30
Indian Overseas
5.45
Post Office
5.50
Interest rates on an FD for 5 years
Bank
Interest Rate (in %)
PNB
5.10
SBI
5.40
HDFC
5.45
Indian Overseas
5.45
ICICI
5.45
Post Office
6.70
Interests gained on FD are taxable
If the interest obtained on an FD is not more than Rs 40,000 in a financial year, there are no tax deductions. This is limited to the people who are less than 60 years of age. For the people who are over 60 years of age, the tax free amounts obtained from FD is Rs 50,000.In case the income exceeds the above limits there is a TDS deduction of 10 %.
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